Transcript - Asian EXIM Bank Forum

Private & Confidential
Evolving Role & Relevence of
Asian Exim Banks – Path to 2020
NOV 2014
Export – Import Bank of Thailand
Rationale for setting-up
2
During 1984 - 1993

Thailand gradually shifted from Agriculture
based economy to Industrial based
economy.

To impose Export-Oriented
Policy, Thailand has entered into free trade
agreements with many countries.

With its tariff reform, Thai exports had an
average growth rate of 17.3%.

High Cost of funds influenced the ability of
Thai Commercial banks to support
International Trade Finance effectively.
• EXPORT - IMPORT BANK OF
THAILAND was established under
the Export-Import Bank of Thailand
Act B.E. 1993.
• Bank of Thailand transferred its
Packing Credit Facility to EXIM
Thailand.
• EXIM Thailand introduced Shortterm Export Credit Insurance.
Rationale for setting-up
3
1994 - present

58.3% of Thailand’s GDP are
contributed by export sector.

Export of capital goods and
services and overseas
investment are increasing.

Overseas Project Finance was
new to Thai commercial bank.
EXIM Thailand had launched Overseas
Investment Facility in 1994, MLT
Insurance in 1999 and Investment
Insurance in 2007 respectively.
Experience so far
4

EXIM Thailand remains focus on its role as “a development bank which promotes and
supports Thailand’s exports and imports as well as domestic and overseas investment”
2,110 MUSD of loan outstanding as of
DEC 2013 classified by industry
2,500
2,110 MUSD
2,000
1,500
1,000
484 MUSD
500
1994
1995
2000
2005
2010
2013
Experience so far
5
4,040 MUSD of insured export bills turnover as of DEC 2013 covering buyers in 79 countries
Is EXIM Thailand still relevant and
effective?
6
Still have opportunities but have to adapt our roles….
“Thai and foreign
financial institutions have
been very active in
supporting Trade Finance
and Overseas investment
transaction specially in
ASEAN region”

Still have an important role especially during
the economic crisis

Working closely with ECAs and financial
institutions to support trade and investment

Using experience/expertise to fill the gap
where commercial banks are not functioning
by providing financial access for Thai SMEs
Constraints for future growth
7
How to overcome constraints
Cost of Funds
No Overseas
Branches &
Offices
Human
Resources
• Retail Deposits are prohibited
• No Annual Government
Budget Allocation
• Lack of first hand information
• Unable to lend in local
currency
• Unable to provide full services
• More training required to
become experts in specific
areas
• High turnover rate

Seek alternative sources of
fund

Manage NIM

Government support

Working with local financial
institutions, local
government entities and
advisors

Training Roadmap

Employees’ benefits
What lies ahead?
8
Beside a mandate to promote and support Thai trade and investments, EXIM Thailand
also focuses on…

Provide financial and related non-financial services to enhance Thai SMEs’
international trade competitiveness particularly in the ASEAN Community


Respond to the public promotion policy for exports and Thai investments abroad
Seek cooperation with the government – private sectors as well as the financial
institutions.
How to evaluate performance?
9
Evaluated by Ministry of Finance
Quantitative Evaluation Approaches
Qualitative Evaluation Approaches

Loan Outstanding

Customer Satisfaction

Export Insurance Turnover

Employee Satisfaction

Numbers of SME Customers


NPLs
Effective and Efficient
Management System

Financial Ratio, e.g. ROA, ROE
AEBF’s synergistic role in charting a
Path to 2020
10
Exchange Information &
Experiences


exchange information,
knowledge, experiences,
and obstacles when each
member provides
services in other
countries and industries
develop information
database
Human Resources
Development


develop appropriate
training program
exchange staffs among
each member
Collaborate to promote
Trade and Investment

Loan

Guarantee /
re-Guarantee

Export Credit Insurance

Political Risk Insurance